Social Security benefits in Japan experience a second consecutive annual decline
Japanese Social Security Benefits Decrease in Fiscal 2023
In a recent report by the National Institute of Population and Social Security Research, it has been revealed that social security benefits in Japan have decreased for the second consecutive year in fiscal 2023. This decrease is primarily attributed to a steep reduction in COVID-19-related benefits and subsidies.
The total social security benefits for fiscal 2023 amounted to 135,492.8 billion yen, a decrease of 2,680.9 billion yen or 1.9%. This reduction is largely due to a significant cutback in pandemic-specific social expenditures following the government's decision to reclassify COVID-19 under the infectious disease law to Category V, the same category as seasonal influenza, in May 2023.
Despite this overall decrease, pensions increased by 1.1% to 56,393.6 billion yen, making up the largest portion of social security benefits. However, medical benefits dropped by 6.5% to 45,579.9 billion yen. This decline in medical benefits is due to a significant drop in COVID-19-related medical expenditures, even though public health insurance benefits rose.
The rise in public health insurance benefits did not offset the decrease in COVID-19-related benefits and subsidies. The total amount of pensions and medical benefits for fiscal 2023 were 56,393.6 billion yen and 45,579.9 billion yen respectively.
It is important to note that despite the decrease in social security benefits, they remained at the third-highest level on record. This dynamic explains how COVID-19-related benefits and pensions contributed to the overall decline: pensions rose slightly, but a much larger fall in COVID-driven benefits and medical expenses caused total social security benefits to decrease.
The data was released on July 29, 2023. This change in social security benefits is a reflection of the ongoing efforts to manage the pandemic and return to normalcy in Japan.
[1] National Institute of Population and Social Security Research [2] Government of Japan, Infectious Diseases Control Act
In light of the decline in social security benefits in Japan for fiscal 2023, a shift might be observed in the photo industry as businesses may seek alternative financing options, such as loans from the finance sector, to compensate for the decrease in COVID-19-related benefits and subsidies. This adjustment in the industry's financial structure could potentially impact various business sectors that rely on social security benefits for their operations.
